Have you read online promotions about 24Hs. Cash advance loans? Do you need money for an emergency and can not wait any further? Do you wonder how 24 Hs. Cash advance loans work? Within this article you will find a brief explanation of this type of cash advance loans and details on the many benefits they provide for those with bad or no credit and for anyone going through an emergency situation with urge for quick cash.
Purpose Of 24 Hs. Cash Advance Loans
These loans are obviously meant for emergencies and the urgency is the main characteristic of the product. To clarify the concept we need to say that these loans are processed within less than 24 business Hs. and thus, if you apply for a loan on a Friday evening chances are that you will not obtain the money till Monday. Other than that, these loans are the financial products which are processed with more swiftness on the market.
But since the lender's risk evaluation team does not have time to assess the risk of the transaction there will be some limitations: the loan amount will not be high, usually these loans provide up to 1,500 dollars and not a cent more. The repayment programs are shorter than on common personal loans and there is usually a fee charged instead of a specific interest rate but that fee would stand for a rather high interest rate when pondered annually.
The Loan Approval Process
One of the most interesting features of 24 Hs. Cash Advance Loans is that you can apply for one online or through the phone. You can complete the online application or contact the lender and have them complete the application on the phone for you. You may be required to fax the agreement with your signature by some lenders but most offer no-fax options too when applying online.
As regards to the requirements for approval, the main one would be to show proof of income which can be done with job payment receipts or tax presentation copies. Some lenders provide these loans with stated income when there is already an existing relation with the bank but these loans are actually pre-approved and your credit has been assessed beforehand.
If your income is suitable, you can obtain the amount of money you need up to the limit provided by the lender. Most of these lenders require no credit verification processes checks but given the little time they have, even if they do require a credit check, they will only pull your credit report once and take a resolution based on the information provided on the report.
Once the loan is approved, which is usually done within a few hours, the amount requested is transferred to an account that the borrower provides at the time of applying for the loan. The whole process never takes more than 24 Hs. and most lenders compensate their clients for any delays by reducing or excluding the fees. However, this only happens exceptionally and you should expect to have your money deposited into your account by the next day you apply for it.
Wednesday, May 30, 2012
Commercial Mortgage Loans For Business
Commercial mortgage loans can be the best way for businesses to finance the build up or buying of infrastructure and land. Commercial mortgage loans are the most affordable and flexible way of financing for businesses. Commercial mortgage loans are set up so that the lender will have legal title on the property until the loan has been successfully paid off. This type of mortgage loan is customized for buying of commercial infrastructure including offices, shops, warehouses, and factories. Commercial mortgages also find application when becoming an owner of an existing business, when buying land or buying a new building.
Commercial mortgages have high interest rates and variable terms when compared to residential mortgages, but commercial mortgages have flexibility and have extra incentive benefits to those who borrow. Large and small-scale businesses have a big decision to make when it comes to the buying and leasing of commercial property. The positives of buying commercial property against the leasing are many. On the other hand, the commercial properties for lending are many in number. The first challenge for companies looking for commercial property is finding the best place to buy and the right location for the business environment.
A business that finds the right property that satisfies all requirements for the business needs to next look for competitive commercial mortgage financing for purchase of the property. The good news is that commercial mortgages for lending to businesses today have become competitive much to the advantage of businesses. The repayment rate for commercial mortgages today could very favorably compare to rental payments or even be cheaper.
The value of commercial property increases over time. This is the added bonus for businesses that seek commercial mortgages for the buying of property. The business should take refurbishment and maintenance costs into consideration when renting commercial property for business. You will find that the terms and conditions for leasing of property state that it is the responsibility of the tenant to take care of costs relating to maintenance or refurbishment.
When paying for a commercial mortgage, the borrower pays mortgage interest rates plus taxes. These costs can be passed on by sub-letting of the commercial building to small tenants. The property stands a better chance of getting a high selling price in the future. Today's recession has forced many people to reconsider their investment options. One of the options has been in the investment of commercial property by use of self-invested personal pensions.
Businesses should ensure they are on the right financial footing before applying for commercial mortgages. The lender will want to know business details before the loan can be approved. The mortgage lender for commercial loans will consider whether the borrower will be able to pay fully and whether the value of the business will cover the loan in the event of a default on the mortgage.
Commercial mortgages have high interest rates and variable terms when compared to residential mortgages, but commercial mortgages have flexibility and have extra incentive benefits to those who borrow. Large and small-scale businesses have a big decision to make when it comes to the buying and leasing of commercial property. The positives of buying commercial property against the leasing are many. On the other hand, the commercial properties for lending are many in number. The first challenge for companies looking for commercial property is finding the best place to buy and the right location for the business environment.
A business that finds the right property that satisfies all requirements for the business needs to next look for competitive commercial mortgage financing for purchase of the property. The good news is that commercial mortgages for lending to businesses today have become competitive much to the advantage of businesses. The repayment rate for commercial mortgages today could very favorably compare to rental payments or even be cheaper.
The value of commercial property increases over time. This is the added bonus for businesses that seek commercial mortgages for the buying of property. The business should take refurbishment and maintenance costs into consideration when renting commercial property for business. You will find that the terms and conditions for leasing of property state that it is the responsibility of the tenant to take care of costs relating to maintenance or refurbishment.
When paying for a commercial mortgage, the borrower pays mortgage interest rates plus taxes. These costs can be passed on by sub-letting of the commercial building to small tenants. The property stands a better chance of getting a high selling price in the future. Today's recession has forced many people to reconsider their investment options. One of the options has been in the investment of commercial property by use of self-invested personal pensions.
Businesses should ensure they are on the right financial footing before applying for commercial mortgages. The lender will want to know business details before the loan can be approved. The mortgage lender for commercial loans will consider whether the borrower will be able to pay fully and whether the value of the business will cover the loan in the event of a default on the mortgage.
Monday, May 28, 2012
An Easy Way To Manage Your Debts Is Debt Consolidation Finance
In modern times, most of us are suppressed under piles of debts. It is becoming more and more difficult to manage debts. Ignoring financial matters for a long time may create trouble for you in the near future. To avoid any such fuss, usually people opt for debt consolidation for matters pertaining to finance. Debt consolidation finance is an integral part of debt management program, which aims at elimination of debts, with debt consolidation plan. Debt consolidation finance can prove to be miraculous, if chosen properly. Now, we will discuss in detail, what debt consolidation finance is and how you should plan it to finance your debts in an uncomplicated manner.
Under a debt consolidation finance plan, the borrower is not supposed to make repayments to different lenders. All of the borrower's debts are merged in to a single debt, and the interest is charged upon that particular amount. This automatically results in trimming down of the entire debt. It makes the debt less complicated and all the more manageable.
Before choosing any debt consolidation finance plan, a borrower can either ask for counsel from some credit advisor or evaluate his financial status on his own. This should take place even prior to your search for debt consolidation finance plan. You should have a clear idea of your own financial situation. First of all, jot down your financial requirements. Here, financial requirements do not mean the things that you would like to buy. It refers to debts that you are planning to repay. You should have a clear cut idea of your long term and short term financial aims. With the help of some arithmetic find out, whether will there be need of an additional source of income or you can manage by cutting some of your expenses.
After ascertaining your own financial position, you can finance your debt consolidation from any of the two available options, which are secured and unsecured. A secured loan mandates any of your property as collateral. It reduces the risk factor, in turn of which, your lender facilitates you with various benefits like lower rate of interest, larger loan amount, longer repayment tenure etc. On the contrary, an unsecured loan does not necessitate any collateral and thus, the rate of interest is higher. The loan amount will be smaller as compared to secured loans. Whatsoever loan you may choose to finance your debt consolidation, make sure you repay it on time. It should also be in conformity with your financial situation.
Under a debt consolidation finance plan, the borrower is not supposed to make repayments to different lenders. All of the borrower's debts are merged in to a single debt, and the interest is charged upon that particular amount. This automatically results in trimming down of the entire debt. It makes the debt less complicated and all the more manageable.
Before choosing any debt consolidation finance plan, a borrower can either ask for counsel from some credit advisor or evaluate his financial status on his own. This should take place even prior to your search for debt consolidation finance plan. You should have a clear idea of your own financial situation. First of all, jot down your financial requirements. Here, financial requirements do not mean the things that you would like to buy. It refers to debts that you are planning to repay. You should have a clear cut idea of your long term and short term financial aims. With the help of some arithmetic find out, whether will there be need of an additional source of income or you can manage by cutting some of your expenses.
After ascertaining your own financial position, you can finance your debt consolidation from any of the two available options, which are secured and unsecured. A secured loan mandates any of your property as collateral. It reduces the risk factor, in turn of which, your lender facilitates you with various benefits like lower rate of interest, larger loan amount, longer repayment tenure etc. On the contrary, an unsecured loan does not necessitate any collateral and thus, the rate of interest is higher. The loan amount will be smaller as compared to secured loans. Whatsoever loan you may choose to finance your debt consolidation, make sure you repay it on time. It should also be in conformity with your financial situation.
Hero Honda Activa The New Indian Family Vehicle
Honda had launched the most remarkable two-wheeler named: Honda Activa Scooter which broke all the sales records and changed the flow of the growth chart in positive direction within a short span of time and still continuing. The unisex Honda Activa practically rules on the Indian roads which has modified the definition of scooters. This swift magic has got the great list of creative features and youthful looks. It emerges as the new passion among the young generation and currently covers the huge portion of the market. Now, this eventful scooter available in number of playful colors and within worthy price range of Rs.42, 000 to Rs.46, 000 only.
Activa scooter has mechanical outfitting of powerful 110cc engine which is enough capable to provide you 15% extra mileage that makes it winning horse of long race. It has net 18 liters storage capacity to offer you smooth and hassle-free drive. Activa Scooter holds the credit of first modern type scooter which finally came equipped with CLIC mechanism to enhance the efficiency and power of the scooter upto a mark level. It is sported with Single Cylinder Air Cooled OHC engine which can deliver a peak power of 8bhp @ 7500rpm and a peak torque of 0.9kgm @ 5500rpm. Along with this practical feature it has got the displacement of 102cc and cylinder bore of 50mm.
Honda Activa has got the beautiful and active dimension that brought revolutionary change in the actual design of the scooters. Its comfy and spongy seat offers you the joyful experience of drive. It has attractive and bright front headlight and strong tyres which have great sense of balance & stability. These tyres have puncture resistant tuff-up tub to provide you stress-free fun of confident drive. In conclusion, Honda Activa is the perfect two-wheeler piece to experience the great excitement and feel proud to drive your passion with unique style.www.naaptol.com opens the huge and rich market of fine products from different brands at very affordable price and discounts.
Activa scooter has mechanical outfitting of powerful 110cc engine which is enough capable to provide you 15% extra mileage that makes it winning horse of long race. It has net 18 liters storage capacity to offer you smooth and hassle-free drive. Activa Scooter holds the credit of first modern type scooter which finally came equipped with CLIC mechanism to enhance the efficiency and power of the scooter upto a mark level. It is sported with Single Cylinder Air Cooled OHC engine which can deliver a peak power of 8bhp @ 7500rpm and a peak torque of 0.9kgm @ 5500rpm. Along with this practical feature it has got the displacement of 102cc and cylinder bore of 50mm.
Honda Activa has got the beautiful and active dimension that brought revolutionary change in the actual design of the scooters. Its comfy and spongy seat offers you the joyful experience of drive. It has attractive and bright front headlight and strong tyres which have great sense of balance & stability. These tyres have puncture resistant tuff-up tub to provide you stress-free fun of confident drive. In conclusion, Honda Activa is the perfect two-wheeler piece to experience the great excitement and feel proud to drive your passion with unique style.www.naaptol.com opens the huge and rich market of fine products from different brands at very affordable price and discounts.
How To Choose Your Business Equipment Lease Partner
Having decided to get equipment lease financing, do you think you're ready to find a lease partner for your business? Do you know the factors that should you should consider before making a choice? Here are some recommendations:
Reliable Service. Finding a lease company that you can rely on is a crucial aspect when doing your search. Your equipment lease partner should be ready to help you not only during the processing of your lease application, but even beyond that.
Pick a lease provider who can get you the devices you need and give you complete support as well such as with the installation and maintenance of your leased equipment. Interview other businesses that belongs to the same industry as you do and know what they have to say about different leasing firms. From their experiences, you can discover which leasing company has the best reputation?
Smooth Lease Processing. An equipment lease company that has been giving excellent service for a long time will certainly process lease applications without delays. Does the lease company offer to assist you with the preparations of your paperwork? Do they present to you all possible alternatives you have when deciding on the best lease package for your type of business?
Flexible terms. Because every business has its own distinctive demands and circumstances vary, you must find an equipment leasing company that offers flexibility, especially with regards to repayment. Have you found a lease package that is best suited to your company's financial capability? Will you have the option to return or purchase the equipment when your lease term ends?
Reasonable Provisions. Besides the rates and fees, look closely at the lease company's provisions on special situations. For example, what will happen if you decide to break your lease prior to the end of your contract? What can happen if your business doesn't go well as expected? What happens if you wish to replace your leased equipment with the latest model in the market?
Field of specialization. Remember that not all leasing companies serve all kinds of businesses. There are equipment lease providers that specialize in a specific industry. Furthermore, there are leasing companies that only cater to bigger businesses while others may focus on small-scale businesses.
It is suggested that you find an equipment lease company that caters to your exact type of business. By doing this, you can minimize the possibility of rejection and obtain a lease plan that really matches your business's needs.
Background and reputation. Conduct your own research. Carry out actual interviews with other business owners, business organizations or business attorneys so you can have an objective view about a particular lessor. Additionally, you can join small business forums or community groups online to collect information.
Consider a lease broker. Finding a lease broker might be necessary especially for more difficult transactions such as if you have a bad credit history. Even so, business owners are warned against dealing with lease brokers who may not have real experience or are not truly knowledgeable about the business equipment leasing process. Before hiring a broker, be sure to examine his/her credentials and training. Select a broker who is enlisted with the National Trade Association for Lease Brokers, NAELB (www.naelb.org or other major equipment leasing associations.
Reliable Service. Finding a lease company that you can rely on is a crucial aspect when doing your search. Your equipment lease partner should be ready to help you not only during the processing of your lease application, but even beyond that.
Pick a lease provider who can get you the devices you need and give you complete support as well such as with the installation and maintenance of your leased equipment. Interview other businesses that belongs to the same industry as you do and know what they have to say about different leasing firms. From their experiences, you can discover which leasing company has the best reputation?
Smooth Lease Processing. An equipment lease company that has been giving excellent service for a long time will certainly process lease applications without delays. Does the lease company offer to assist you with the preparations of your paperwork? Do they present to you all possible alternatives you have when deciding on the best lease package for your type of business?
Flexible terms. Because every business has its own distinctive demands and circumstances vary, you must find an equipment leasing company that offers flexibility, especially with regards to repayment. Have you found a lease package that is best suited to your company's financial capability? Will you have the option to return or purchase the equipment when your lease term ends?
Reasonable Provisions. Besides the rates and fees, look closely at the lease company's provisions on special situations. For example, what will happen if you decide to break your lease prior to the end of your contract? What can happen if your business doesn't go well as expected? What happens if you wish to replace your leased equipment with the latest model in the market?
Field of specialization. Remember that not all leasing companies serve all kinds of businesses. There are equipment lease providers that specialize in a specific industry. Furthermore, there are leasing companies that only cater to bigger businesses while others may focus on small-scale businesses.
It is suggested that you find an equipment lease company that caters to your exact type of business. By doing this, you can minimize the possibility of rejection and obtain a lease plan that really matches your business's needs.
Background and reputation. Conduct your own research. Carry out actual interviews with other business owners, business organizations or business attorneys so you can have an objective view about a particular lessor. Additionally, you can join small business forums or community groups online to collect information.
Consider a lease broker. Finding a lease broker might be necessary especially for more difficult transactions such as if you have a bad credit history. Even so, business owners are warned against dealing with lease brokers who may not have real experience or are not truly knowledgeable about the business equipment leasing process. Before hiring a broker, be sure to examine his/her credentials and training. Select a broker who is enlisted with the National Trade Association for Lease Brokers, NAELB (www.naelb.org or other major equipment leasing associations.
Sunday, May 27, 2012
Stock Investment In Nigeria: Its Process And Benefits
Introduction
Securities are created and issued by corporate bodies and governments, which are in need of funds to finance expansion or development projects. For instance, Wazobia Plc, a manufacturing concern needs to expand its facilities to accommodate present and anticipated consumer demand as well as replace aging or obsolete equipments. It is however, short of internally generated funds (retained earnings) to undertake the projects require long gestation and payback periods, money market facilities which have short tenure would be inappropriate funding sources. The company would be left with one possible option, that is, to access the capital market if it meets the requirements for entry. This could be done by issuing shares and/or debt instruments. (Securities and Exchange Commission, 1999). Thus, capital market is a segment of financial market that is responsible for mobilizing and channelling long term funds into productive investment such as fixed assets. The investments in capital market are at longer period of time, which are held for a minimum of five years.
Moreover, the term securities consist of stocks and bonds. It is not possible in
this paper to digest all aspect of securities. Therefore, this paper shall limit itself to stocks only (i.e. shares).
Theoretical Framework
Fischer and Jordan (2005) see investment as a commitment of funds made in the expectation of some positive rate of return. If the investment is properly undertaken, the return will be commensurate with the risk the investor assumes.
Similarly, an investment is the current commitment of money or other resources in the expectation of reaping future benefits. For example, an individual might purchase shares of stock anticipating that the future proceeds from the shares
will justify both the time that her money is tied up as well as the risk of the investment. You sacrifice something of value now, expecting to benefit from that sacrifice later. (Bodie, Kane, and Marcus, 1998, p. 2).
Distinction between real assets and financial assets
According to Bodie, Kane, & Marcus (1998) real assets are assets used to produce goods and services. In contrast to such real assets are financial assets, such as stocks and bonds. Such securities are no more than sheets of paper (or entries in a computer) Financial assets are claims to the income generated by real assets (or claims on income from the government). If we cannot own our own auto plant, we can still buy shares in General Motors or Toyota and, thereby, share in the income derived from the production of automobiles.
Definition of Stock
In simple terms shares is ownership in share of a corporation. According to Ahmed (2008) securities as stocks and bonds. According to him, a stock represents a share, or percentage, in a corporation's profits and assets. By purchasing stock an investor is buying a percentage of ownership in a company.
Different Types of Stock
There are two main types of stock or shares, namely; ordinary shares and preference shares. Ordinary shares according to Nwiwu, Ya'u, Ezeocha, Ezima and Uzoigwe (2007) this form that part of capital structure of the business contributed by the common stock holders .For a new company it is called venture capital but in the old companies it is called equity share capital.
Ordinary or equity shareholders ordinarily own the business, so all reserves belong to them. They have the right to votes in the company. The shares are non- redeemable even though transferable. However, they have no fixed rate of dividend since rate depends on the level of profitability, company liquidity and management discretion. On the other hand, Preference shares are the hybrid or bat of financing because they exhibit the tendencies of both equity and debt at the same time. They have a fixed percentage dividend before any dividend is paid to the ordinary shareholders.
Share Certificate
Nwaiwu (2004) when shares are allotted to the investor a note will be sent indicating the number of shares allotted. After some period a share certificate will be issued. This certificate is a security, a proof of ownership of the shares in the company. If in future the shareholder wishes to sell the shares, the share certificate must be surrendered to a stockbroker who will forward it to the company's registrar. Nigerian Investments and Securities Law Reports (2004) pointed out that securities in the market are available in either of the following two (2) forms:
i. In certificate form; and
ii. In dematerialized form
When a security is presented in a certificate form, the selling agent needs to verify the signature of the holder and the validity of the presented certificate(s) with the Registrar to the company, after which it could be deposited for sale or any other form of transfer in dematerialized form into the account of the beneficial owner held with the CSCS. Consequently, any subsequent sale or transfer of these securities can validly be undertaken without any need to revert to the Registrar. It therefore follows that securities held in the CSCS account of any holder are deemed to have undergone the necessary verification and confirmation with the Registrars and therefore the holder is rightfully accepted as the true beneficial owner of the securities reflected in his account with CSCS. Thereafter, the only proof of ownership of the said securities that is available to the beneficial owner is the CSCS statement of account issued to him.
Benefits of Investing in Shares
According to Kofa (2004) there are numerous benefits accruing to a shareholder who invests in shares. Such benefits include:
i) Return on investment by way of dividend payment (share of profit by the company on each share owned by the shareholder. This of course depends on the number of shares held by the shareholder. The dividend declared by the company's Directors must however be approved at the company's Annual General Meeting (AGM).
ii) Bonus issue, this is an additional share given to shareholders based on the number of shares owned by each shareholder free of charge at a ratio approved by the Board of Directors/Management and ratified at the company's AGM.
iii) Capital appreciation; this is an increase of share price over time. The value of company share increases due to performance and demand/supply factors. That is, for example, unit price of share purchased today at N10.00 could be N20.00 one year after, due to market forces.
iv) It can be used for security/collateral for loan purposes. Share certificates or statements are acceptable as good collateral for loans by banks and other financial institutions.
v) Pressing immediate needs could be met without seeking any bank/individual financial assistance by disposition of shares.
Risks associated with stock investment
Elakama (2004) emphasized that there are no guarantees when it comes to individual stocks. Some companies pay out dividends, but many others do not. And there is no obligation to pay out dividends even for those firms that have traditionally given them. Without dividends an investor can make money on a stock only through its appreciation in the open market. On the downside, any stock may go bankrupt, in which case your investment is worth nothing.
Similarly, Securities and Exchange Commission (1999) like other forms of investments, there are risk/cost associated with investing in the capital market. There are also obligations on issuers of securities. The risk to investors includes possible unfavourable rate of return owing to depreciation in market value and/or nonpayment of dividends. It could also involve possible loss of investment should a company go burst.
Nature of capital market
At this point, it is important to recognise the nature of capital market. Sulaiman (1999) defines capital market as a network of interrelated institutions governed by operational guidelines which permit the sale of equity and long term debt
Elements of the capital market
There are three identifiable features of a capital market. These are: the instruments; the market place; and the participants.
a) Financial instruments
Financial instruments are the investment products, created to ensure the smooth and easy transfer of funds in the capital market. These instruments, generally known as securities are financial assets, which represent either debt or ownership. The instruments have various features depending on their type between the primary and secondary markets is the fact that proceeds of sale of primary securities go to the issuer (company or government) whereas in the secondary market, proceeds go to the investor.
b) The market place
Securities and Exchange Commission (1999) the capital market is divided into two separate but closely-related segments known as the primary and secondary markets. Primary Market a forum where new shares are offered to both existing shareholders and general public for purchase. Primary market offers can either be made directly by the company to increase its paid-up capital or through privatization of Government holdings, technically called divestment of government shares. On the other hand, Secondary Market is a market where existing shares are traded (sold and bought). Trading of shares at secondary market takes place on the floor of The Nigerian stock exchange. The Stockbrokers buy and sell shares on behalf of their respective clients. Essentially, the Stockbrokers are the dealing member firms licensed by both the Nigeria Stock Exchange (NSE) and the Securities and Exchange Commission (SEC) to deal on shares and offer other services to the investing public. (Kofa, 2004, p.28).
c) Participants in the Market
Securities and Exchange Commission (1999) to facilitate the saving and investment process in any economy, financial intermediaries must exist and in good number. The financial intermediary is essentially a middleman who pools funds form savers and passes on such funds to those in need of them. An intermediary is a specialist) professional) in his line of business and thus, heavily relied upon by his clients to make good investment judgement on their behalf or provide professional advisory services to them. The capital market has a wide array of intermediaries performing various intermediation functions. They include:
i) Issuing Houses: These are institutions which assist corporate bodies and governments to raise long-term funds by packaging security issues for subscription on their behalf. The issuing house by this function plays a central role in the issuance process, and in industrial development. The issuing house as the principal agent of and adviser to the issuer has the responsibility of advising its clients on the most appropriate instrument and method of sourcing the required capital. It also has the responsibility of assembling and coordination all other specialists required in the issue process, ensuring that statutory and all other requirements are met, and that the issue is properly packaged and successfully concluded. Packaging would include pricing of the securities, preparation of the prospectus and other documents, as well as marketing and distribution of the securities.
ii) Stockbrokers/dealers: These are major players in the secondary market. Stockbrokers are the only persons permitted to transact business on the floor of a stock exchange or on the over-the-counter market. A stockbroker, therefore, stands between the seller and buyer of registered securities, making it possible for both parties to realize their desire to buy or sell securities. To act as an agent of the public or deal in his own account, a stockbroker/dealer must be registered by the statutory regulatory agency (Securities and Exchange Commission) and licensed by the stock exchange. As an agent of his client, the stockbroker is under obligations to transact business for him at the best price obtainable in the market.
iii) Investment Advisers: These are institutions/persons registered by the statutory regulatory agency to provide investment advisory services to their client for a fee. Investment advisory services are incidental to stock broking and issuing house business.
iv) Portfolio Managers: These are institutions registered by the statutory regulatory agency to manage the portfolio of clients. Portfolio management entails the receipt of funds, sometimes very large sums, to be invested by the portfolio manager. Most often, the choice of investments are left to the manger who however must send periodic investment statements, to his client. In exercising his discretion, the manager must at all times, consider the best interest of his clients. Both investments advisory and portfolio management services require extensive economic/market analyses to guide investment decisions and advice to clients.
v) Registrars: These are institutions employed by companies to keep comprehensive registers of their members (shareholders) and creditors. In addition, they arrange annual general and extra-ordinary meetings for their clients; distribute stock/share certificates, annual reports, dividend warrants and notices of shareholders' meetings. In cases of issue oversubscription, registrars dispatch surplus monies to subscribers.
vi) Trustees: These are important participants in debt issues and collective investment schemes such as unit trust. The trustee protects the interest of investors in debt instruments by monitoring and ensuring the fulfillment of the term of the trust deed.
vii) Receiving Agents: These are banks and stockbroking firms appointed by the issuing house to serve as centers for the distribution of offer applications forms, as well as for the receipt of subscriptions monies on behalf of the issuing house, for a fee.
viii) Receiving Bankers: These are banks designated by an issuer to receive proceeds of an issue on its behalf.
ix) Solicitors: These are law firms which either represent the issue or the issuer. In practice, two solicitors are required in a public issue of securities. These are the solicitor to the company (issuer) and the solicitor to the issue. The solicitor to the company among other things ensures that the memorandum and articles of association of the company are in consonance with legal requirements of a public company, and effect amendments where necessary. The solicitor would examine issue relating to the authorized capital, ensuring that it can accommodate the issue being proposed. Where a debenture stock is to be floated, the solicitor would make sure that the company has the borrowing power to do so. Generally, it is the duty of the solicitor to the company to ensure that the company complies with the provisions of the corporate law of the country (e.g. the Companies and Allied Matters Decree 1990 in Nigeria).
x) Auditors: These are the existing auditors of the company. In their capacity as the auditors, they provide historical perspective on the accounts of the company for inclusion in the prospectus.
xi) Reporting Accountants: These are firms of accountants which provide independent assessment of the accounts of the company. They review management forecast and examine the reasonableness or otherwise of such forecast. Based on their findings, the reporting accountants can recommend adjustments to the management forecast. They also prepare statement of indebtedness of the company, among other things.
Prerequisites to successful investing in stock
a) Selecting a Broker
According to Fischer and Jordan (2005) the investor's first step in establishing a satisfactory relationship with a broker is to choose a firm that is suitable for his needs and to select a representative of the firm with whom he can work. In practice separating the two choices is hard, for if one has chosen a satisfactory firm but is unhappy with the representative, it is embarrassing to shift one's account to another representative within the same firm. The brokerage firm should be a well-known and long-established institution. In selecting a firm an investor can ask for recommendations from his bank or from friends whose opinions he trusts.
b) Opening a Brokerage Account
This is an investment account, which is opened with the CSCS through a stockbroker. When this account is opened a client is issued with two numbers. The first number is called 'CSCS No.'. It is computer-generated numbers allocated to a new shareholder. It is unique to each stock-broking firm. Although a shareholder can have as many accounts as the number of stockbroking firms he uses. Furthermore, CSCS No is alphanumeric which is used if you have to fill in public offers if you desire shares allotted to you to be credited to your account.
Investors Account No. is numeric which is used internally on the floor for trading. In other word, investor's No. is the CHN represents the Clearing House Number assigned to every shareholder at the first point of entry into the CSCS system. He/She must have completed the CSCS -- R005 Shareholders Particulars Form. They are to provide the same CHN to all subsequent stockbroking firms they may have transactions with for ease of reference.
Other Prerequisites to successful investing in stock include opening a Bank Account, access to Post office Box (P. O. Box), access to Phone and active E-mail Address.
Process of acquiring shares
According to Nigerian Investments and Securities Law Report [NISLR] (2004) shares could be acquired by six (6) main modes;
1) Public offer;
2) Rights offer;
3) Bonus;
4) Nominal transfer; i.e. Transfer of share by way of gift.
5) Transmission from a dead relation or friends or collective investments or investments previously held under a corporate name for a beneficiary; and lastly
6) By purchase on the secondary market.
In general, a prospective investor who wishes to purchase shares on the secondary market is expected to approach a stockbroker such as Newdevco with a request to purchase or to invest in shares at a secondary market. In response, the stockbroker asks the prospective client which stock/shares he/she intends to purchase. Where the client has a selected stock in mind, the stockbroker executes the order according to the expressed need or interest of the client/customer. (Kofa, 2004).
Kofa (2004) added that in a situation where a client does not know which stock/share to buy, the stockbroker explains and advises the client accordingly in detail the shares to invest in. Consequently the stockbroker gives the client the necessary share transfer forms and Central Security Clearing System (CSCS) (particulars of shareholder) for completion. These documents are used to lodge the shares at Registrars Department of the company and also to open the new CSCS account for the client. The shares requested by client to be purchased are normally paid for by Bank Draft or physical clash to a stockbroker, who will in turn given an official receipt for the draft value or cash collected. Thereafter, the stockbroker purchases the shares as requested by client. Whenever the transactions are fully consummated, the stockbroker shall forward the CSCS statement of stock position to the client as evidence of ownership of such shares.
Benefits of Central Security Clearing System (CSCS)
Nigerian Stock Exchange (2008) states the benefits of CSCS to the operation of the Nigerian Stock Exchange as follows:
a) To Investors
Investors statements of stock position are issued every quarter free of charge or on demand for =N=100.00.
Use of stock position as collateral for loan facility after T + 3 settlement cycle i.e. 4 working days. In effect, a statement of stock position is obtainable from CSCS 4 days after transaction.
Investors can speculate more and take advantage of capital appreciation in their investment because of the T+3 settlement cycle.
Reduced risk of loss of certificates.
b) Quoted Companies
Huge cost associated with the production of share certificates for transaction through the secondary market has been significantly reduced.
Before CSCS, a single transaction on a certificate led to the cancellation of the certificate and the issuance of as many as ten (10) certificates depending on allotments made. This is no longer so since few shareholders request for certificates.
Indeed, of the 400,000 shareholders who use CSCS system now, only 2,200 shareholders have requested for certificates to date.
Amalgamation/consolidation of several accounts for a shareholder on the register leading to reduction of cost to the company.
c) Stockbroking Firms
Prompt Inter-member money and stock-settlement are assured.
The problems associated with delivery of shares are minimize
Increased efficiency and profit
Reduction in operational cost.
Disposal of Shares
According to Kofa (2004) a shareholder who wishes to dispose his/her shares is expected to go to a licensed stockbroker only. A Stockbroker is seen as the authorized agent approved by the government to deal in shares, especially in the purchase or sale of shares on behalf of an individual, group or company. The original hare certificates or CSCS statement will be tendered to a Stockbroker who will issue the relevant forms for completion by the shareholder and then forwarded to company Registrars for signature verification. That is, confirm the ownership of the shares in the case of share certificate. However, in the case of CSCS statement, the stockbroker verifies his client's signature. After the confirmation of signature, the share is taken to the floor of, say, the Nigerian Stock Exchange for appropriate disposal. After the disposal contract, a note shall be raised appropriately and the net proceeds is remitted to the shareholder after commissions and statutory charges are deducted as approved by the Nigerian Stock Exchange.
Recent Development in the Nigerian Capital Market
There are two recent developments in the Nigerian Capital Market. First, is the launching the e-dividend payment system which would subsequently solve the problem of unclaimed dividends by the Securities and Exchange Commission (SEC).
According to Olamijulo (2008) the e-dividends payment system refers to the payment of dividend due to shareholders through electronic means into the shareholders' nominated bank accounts. It implies same day clearance for dividend payment. He added that the system would enable shareholders receive their dividends on the same day, thereafter a confirmation letter of the dividend payment would be dispatched by the registrar. The e-dividend payment system would minimise cases of unclaimed dividends, eliminate dividend loss in transit, the forfeiture of dividends in the future and enhance the ability of shareholders to immediately access and utilize the proceeds of their investments.
Secondly, is the launching of e-allotment which will be fully operational from January 1, 2009. Ahmed, (2008) reported that the system is aimed at enabling the achievement of a certificate-less system in the Nigeria capital market.
E-allotment of shares as it is known is a process of direct credit of approved allotment on offers to the CSCS account of shareholders, as against the conventional issuance of share certificates. It is a process which will aid the achievement of certificateless transaction in the Nigerian capital market. (UBA Registrars, 2008)
The e-allotment is introduced as a result of postal services delays, and "the need to reduce costs in printing and dispatch of share certificates as well as to enable all investors in public offers speedily allotted shares."
Conclusions and Recommendations
It can be concluded that in Nigeria, the only obstacle to stock investment is the low level of investors' enlightenment on the benefits of the entire system, which has greatly affected the acceptance level negatively. Therefore, it is recommended that the regulatory agencies like the Nigerian Stock Exchange and Securities and Exchange Commission should continue to enlighten Nigerian especially, using major Nigerian languages on the gains of stock investment.
Securities are created and issued by corporate bodies and governments, which are in need of funds to finance expansion or development projects. For instance, Wazobia Plc, a manufacturing concern needs to expand its facilities to accommodate present and anticipated consumer demand as well as replace aging or obsolete equipments. It is however, short of internally generated funds (retained earnings) to undertake the projects require long gestation and payback periods, money market facilities which have short tenure would be inappropriate funding sources. The company would be left with one possible option, that is, to access the capital market if it meets the requirements for entry. This could be done by issuing shares and/or debt instruments. (Securities and Exchange Commission, 1999). Thus, capital market is a segment of financial market that is responsible for mobilizing and channelling long term funds into productive investment such as fixed assets. The investments in capital market are at longer period of time, which are held for a minimum of five years.
Moreover, the term securities consist of stocks and bonds. It is not possible in
this paper to digest all aspect of securities. Therefore, this paper shall limit itself to stocks only (i.e. shares).
Theoretical Framework
Fischer and Jordan (2005) see investment as a commitment of funds made in the expectation of some positive rate of return. If the investment is properly undertaken, the return will be commensurate with the risk the investor assumes.
Similarly, an investment is the current commitment of money or other resources in the expectation of reaping future benefits. For example, an individual might purchase shares of stock anticipating that the future proceeds from the shares
will justify both the time that her money is tied up as well as the risk of the investment. You sacrifice something of value now, expecting to benefit from that sacrifice later. (Bodie, Kane, and Marcus, 1998, p. 2).
Distinction between real assets and financial assets
According to Bodie, Kane, & Marcus (1998) real assets are assets used to produce goods and services. In contrast to such real assets are financial assets, such as stocks and bonds. Such securities are no more than sheets of paper (or entries in a computer) Financial assets are claims to the income generated by real assets (or claims on income from the government). If we cannot own our own auto plant, we can still buy shares in General Motors or Toyota and, thereby, share in the income derived from the production of automobiles.
Definition of Stock
In simple terms shares is ownership in share of a corporation. According to Ahmed (2008) securities as stocks and bonds. According to him, a stock represents a share, or percentage, in a corporation's profits and assets. By purchasing stock an investor is buying a percentage of ownership in a company.
Different Types of Stock
There are two main types of stock or shares, namely; ordinary shares and preference shares. Ordinary shares according to Nwiwu, Ya'u, Ezeocha, Ezima and Uzoigwe (2007) this form that part of capital structure of the business contributed by the common stock holders .For a new company it is called venture capital but in the old companies it is called equity share capital.
Ordinary or equity shareholders ordinarily own the business, so all reserves belong to them. They have the right to votes in the company. The shares are non- redeemable even though transferable. However, they have no fixed rate of dividend since rate depends on the level of profitability, company liquidity and management discretion. On the other hand, Preference shares are the hybrid or bat of financing because they exhibit the tendencies of both equity and debt at the same time. They have a fixed percentage dividend before any dividend is paid to the ordinary shareholders.
Share Certificate
Nwaiwu (2004) when shares are allotted to the investor a note will be sent indicating the number of shares allotted. After some period a share certificate will be issued. This certificate is a security, a proof of ownership of the shares in the company. If in future the shareholder wishes to sell the shares, the share certificate must be surrendered to a stockbroker who will forward it to the company's registrar. Nigerian Investments and Securities Law Reports (2004) pointed out that securities in the market are available in either of the following two (2) forms:
i. In certificate form; and
ii. In dematerialized form
When a security is presented in a certificate form, the selling agent needs to verify the signature of the holder and the validity of the presented certificate(s) with the Registrar to the company, after which it could be deposited for sale or any other form of transfer in dematerialized form into the account of the beneficial owner held with the CSCS. Consequently, any subsequent sale or transfer of these securities can validly be undertaken without any need to revert to the Registrar. It therefore follows that securities held in the CSCS account of any holder are deemed to have undergone the necessary verification and confirmation with the Registrars and therefore the holder is rightfully accepted as the true beneficial owner of the securities reflected in his account with CSCS. Thereafter, the only proof of ownership of the said securities that is available to the beneficial owner is the CSCS statement of account issued to him.
Benefits of Investing in Shares
According to Kofa (2004) there are numerous benefits accruing to a shareholder who invests in shares. Such benefits include:
i) Return on investment by way of dividend payment (share of profit by the company on each share owned by the shareholder. This of course depends on the number of shares held by the shareholder. The dividend declared by the company's Directors must however be approved at the company's Annual General Meeting (AGM).
ii) Bonus issue, this is an additional share given to shareholders based on the number of shares owned by each shareholder free of charge at a ratio approved by the Board of Directors/Management and ratified at the company's AGM.
iii) Capital appreciation; this is an increase of share price over time. The value of company share increases due to performance and demand/supply factors. That is, for example, unit price of share purchased today at N10.00 could be N20.00 one year after, due to market forces.
iv) It can be used for security/collateral for loan purposes. Share certificates or statements are acceptable as good collateral for loans by banks and other financial institutions.
v) Pressing immediate needs could be met without seeking any bank/individual financial assistance by disposition of shares.
Risks associated with stock investment
Elakama (2004) emphasized that there are no guarantees when it comes to individual stocks. Some companies pay out dividends, but many others do not. And there is no obligation to pay out dividends even for those firms that have traditionally given them. Without dividends an investor can make money on a stock only through its appreciation in the open market. On the downside, any stock may go bankrupt, in which case your investment is worth nothing.
Similarly, Securities and Exchange Commission (1999) like other forms of investments, there are risk/cost associated with investing in the capital market. There are also obligations on issuers of securities. The risk to investors includes possible unfavourable rate of return owing to depreciation in market value and/or nonpayment of dividends. It could also involve possible loss of investment should a company go burst.
Nature of capital market
At this point, it is important to recognise the nature of capital market. Sulaiman (1999) defines capital market as a network of interrelated institutions governed by operational guidelines which permit the sale of equity and long term debt
Elements of the capital market
There are three identifiable features of a capital market. These are: the instruments; the market place; and the participants.
a) Financial instruments
Financial instruments are the investment products, created to ensure the smooth and easy transfer of funds in the capital market. These instruments, generally known as securities are financial assets, which represent either debt or ownership. The instruments have various features depending on their type between the primary and secondary markets is the fact that proceeds of sale of primary securities go to the issuer (company or government) whereas in the secondary market, proceeds go to the investor.
b) The market place
Securities and Exchange Commission (1999) the capital market is divided into two separate but closely-related segments known as the primary and secondary markets. Primary Market a forum where new shares are offered to both existing shareholders and general public for purchase. Primary market offers can either be made directly by the company to increase its paid-up capital or through privatization of Government holdings, technically called divestment of government shares. On the other hand, Secondary Market is a market where existing shares are traded (sold and bought). Trading of shares at secondary market takes place on the floor of The Nigerian stock exchange. The Stockbrokers buy and sell shares on behalf of their respective clients. Essentially, the Stockbrokers are the dealing member firms licensed by both the Nigeria Stock Exchange (NSE) and the Securities and Exchange Commission (SEC) to deal on shares and offer other services to the investing public. (Kofa, 2004, p.28).
c) Participants in the Market
Securities and Exchange Commission (1999) to facilitate the saving and investment process in any economy, financial intermediaries must exist and in good number. The financial intermediary is essentially a middleman who pools funds form savers and passes on such funds to those in need of them. An intermediary is a specialist) professional) in his line of business and thus, heavily relied upon by his clients to make good investment judgement on their behalf or provide professional advisory services to them. The capital market has a wide array of intermediaries performing various intermediation functions. They include:
i) Issuing Houses: These are institutions which assist corporate bodies and governments to raise long-term funds by packaging security issues for subscription on their behalf. The issuing house by this function plays a central role in the issuance process, and in industrial development. The issuing house as the principal agent of and adviser to the issuer has the responsibility of advising its clients on the most appropriate instrument and method of sourcing the required capital. It also has the responsibility of assembling and coordination all other specialists required in the issue process, ensuring that statutory and all other requirements are met, and that the issue is properly packaged and successfully concluded. Packaging would include pricing of the securities, preparation of the prospectus and other documents, as well as marketing and distribution of the securities.
ii) Stockbrokers/dealers: These are major players in the secondary market. Stockbrokers are the only persons permitted to transact business on the floor of a stock exchange or on the over-the-counter market. A stockbroker, therefore, stands between the seller and buyer of registered securities, making it possible for both parties to realize their desire to buy or sell securities. To act as an agent of the public or deal in his own account, a stockbroker/dealer must be registered by the statutory regulatory agency (Securities and Exchange Commission) and licensed by the stock exchange. As an agent of his client, the stockbroker is under obligations to transact business for him at the best price obtainable in the market.
iii) Investment Advisers: These are institutions/persons registered by the statutory regulatory agency to provide investment advisory services to their client for a fee. Investment advisory services are incidental to stock broking and issuing house business.
iv) Portfolio Managers: These are institutions registered by the statutory regulatory agency to manage the portfolio of clients. Portfolio management entails the receipt of funds, sometimes very large sums, to be invested by the portfolio manager. Most often, the choice of investments are left to the manger who however must send periodic investment statements, to his client. In exercising his discretion, the manager must at all times, consider the best interest of his clients. Both investments advisory and portfolio management services require extensive economic/market analyses to guide investment decisions and advice to clients.
v) Registrars: These are institutions employed by companies to keep comprehensive registers of their members (shareholders) and creditors. In addition, they arrange annual general and extra-ordinary meetings for their clients; distribute stock/share certificates, annual reports, dividend warrants and notices of shareholders' meetings. In cases of issue oversubscription, registrars dispatch surplus monies to subscribers.
vi) Trustees: These are important participants in debt issues and collective investment schemes such as unit trust. The trustee protects the interest of investors in debt instruments by monitoring and ensuring the fulfillment of the term of the trust deed.
vii) Receiving Agents: These are banks and stockbroking firms appointed by the issuing house to serve as centers for the distribution of offer applications forms, as well as for the receipt of subscriptions monies on behalf of the issuing house, for a fee.
viii) Receiving Bankers: These are banks designated by an issuer to receive proceeds of an issue on its behalf.
ix) Solicitors: These are law firms which either represent the issue or the issuer. In practice, two solicitors are required in a public issue of securities. These are the solicitor to the company (issuer) and the solicitor to the issue. The solicitor to the company among other things ensures that the memorandum and articles of association of the company are in consonance with legal requirements of a public company, and effect amendments where necessary. The solicitor would examine issue relating to the authorized capital, ensuring that it can accommodate the issue being proposed. Where a debenture stock is to be floated, the solicitor would make sure that the company has the borrowing power to do so. Generally, it is the duty of the solicitor to the company to ensure that the company complies with the provisions of the corporate law of the country (e.g. the Companies and Allied Matters Decree 1990 in Nigeria).
x) Auditors: These are the existing auditors of the company. In their capacity as the auditors, they provide historical perspective on the accounts of the company for inclusion in the prospectus.
xi) Reporting Accountants: These are firms of accountants which provide independent assessment of the accounts of the company. They review management forecast and examine the reasonableness or otherwise of such forecast. Based on their findings, the reporting accountants can recommend adjustments to the management forecast. They also prepare statement of indebtedness of the company, among other things.
Prerequisites to successful investing in stock
a) Selecting a Broker
According to Fischer and Jordan (2005) the investor's first step in establishing a satisfactory relationship with a broker is to choose a firm that is suitable for his needs and to select a representative of the firm with whom he can work. In practice separating the two choices is hard, for if one has chosen a satisfactory firm but is unhappy with the representative, it is embarrassing to shift one's account to another representative within the same firm. The brokerage firm should be a well-known and long-established institution. In selecting a firm an investor can ask for recommendations from his bank or from friends whose opinions he trusts.
b) Opening a Brokerage Account
This is an investment account, which is opened with the CSCS through a stockbroker. When this account is opened a client is issued with two numbers. The first number is called 'CSCS No.'. It is computer-generated numbers allocated to a new shareholder. It is unique to each stock-broking firm. Although a shareholder can have as many accounts as the number of stockbroking firms he uses. Furthermore, CSCS No is alphanumeric which is used if you have to fill in public offers if you desire shares allotted to you to be credited to your account.
Investors Account No. is numeric which is used internally on the floor for trading. In other word, investor's No. is the CHN represents the Clearing House Number assigned to every shareholder at the first point of entry into the CSCS system. He/She must have completed the CSCS -- R005 Shareholders Particulars Form. They are to provide the same CHN to all subsequent stockbroking firms they may have transactions with for ease of reference.
Other Prerequisites to successful investing in stock include opening a Bank Account, access to Post office Box (P. O. Box), access to Phone and active E-mail Address.
Process of acquiring shares
According to Nigerian Investments and Securities Law Report [NISLR] (2004) shares could be acquired by six (6) main modes;
1) Public offer;
2) Rights offer;
3) Bonus;
4) Nominal transfer; i.e. Transfer of share by way of gift.
5) Transmission from a dead relation or friends or collective investments or investments previously held under a corporate name for a beneficiary; and lastly
6) By purchase on the secondary market.
In general, a prospective investor who wishes to purchase shares on the secondary market is expected to approach a stockbroker such as Newdevco with a request to purchase or to invest in shares at a secondary market. In response, the stockbroker asks the prospective client which stock/shares he/she intends to purchase. Where the client has a selected stock in mind, the stockbroker executes the order according to the expressed need or interest of the client/customer. (Kofa, 2004).
Kofa (2004) added that in a situation where a client does not know which stock/share to buy, the stockbroker explains and advises the client accordingly in detail the shares to invest in. Consequently the stockbroker gives the client the necessary share transfer forms and Central Security Clearing System (CSCS) (particulars of shareholder) for completion. These documents are used to lodge the shares at Registrars Department of the company and also to open the new CSCS account for the client. The shares requested by client to be purchased are normally paid for by Bank Draft or physical clash to a stockbroker, who will in turn given an official receipt for the draft value or cash collected. Thereafter, the stockbroker purchases the shares as requested by client. Whenever the transactions are fully consummated, the stockbroker shall forward the CSCS statement of stock position to the client as evidence of ownership of such shares.
Benefits of Central Security Clearing System (CSCS)
Nigerian Stock Exchange (2008) states the benefits of CSCS to the operation of the Nigerian Stock Exchange as follows:
a) To Investors
Investors statements of stock position are issued every quarter free of charge or on demand for =N=100.00.
Use of stock position as collateral for loan facility after T + 3 settlement cycle i.e. 4 working days. In effect, a statement of stock position is obtainable from CSCS 4 days after transaction.
Investors can speculate more and take advantage of capital appreciation in their investment because of the T+3 settlement cycle.
Reduced risk of loss of certificates.
b) Quoted Companies
Huge cost associated with the production of share certificates for transaction through the secondary market has been significantly reduced.
Before CSCS, a single transaction on a certificate led to the cancellation of the certificate and the issuance of as many as ten (10) certificates depending on allotments made. This is no longer so since few shareholders request for certificates.
Indeed, of the 400,000 shareholders who use CSCS system now, only 2,200 shareholders have requested for certificates to date.
Amalgamation/consolidation of several accounts for a shareholder on the register leading to reduction of cost to the company.
c) Stockbroking Firms
Prompt Inter-member money and stock-settlement are assured.
The problems associated with delivery of shares are minimize
Increased efficiency and profit
Reduction in operational cost.
Disposal of Shares
According to Kofa (2004) a shareholder who wishes to dispose his/her shares is expected to go to a licensed stockbroker only. A Stockbroker is seen as the authorized agent approved by the government to deal in shares, especially in the purchase or sale of shares on behalf of an individual, group or company. The original hare certificates or CSCS statement will be tendered to a Stockbroker who will issue the relevant forms for completion by the shareholder and then forwarded to company Registrars for signature verification. That is, confirm the ownership of the shares in the case of share certificate. However, in the case of CSCS statement, the stockbroker verifies his client's signature. After the confirmation of signature, the share is taken to the floor of, say, the Nigerian Stock Exchange for appropriate disposal. After the disposal contract, a note shall be raised appropriately and the net proceeds is remitted to the shareholder after commissions and statutory charges are deducted as approved by the Nigerian Stock Exchange.
Recent Development in the Nigerian Capital Market
There are two recent developments in the Nigerian Capital Market. First, is the launching the e-dividend payment system which would subsequently solve the problem of unclaimed dividends by the Securities and Exchange Commission (SEC).
According to Olamijulo (2008) the e-dividends payment system refers to the payment of dividend due to shareholders through electronic means into the shareholders' nominated bank accounts. It implies same day clearance for dividend payment. He added that the system would enable shareholders receive their dividends on the same day, thereafter a confirmation letter of the dividend payment would be dispatched by the registrar. The e-dividend payment system would minimise cases of unclaimed dividends, eliminate dividend loss in transit, the forfeiture of dividends in the future and enhance the ability of shareholders to immediately access and utilize the proceeds of their investments.
Secondly, is the launching of e-allotment which will be fully operational from January 1, 2009. Ahmed, (2008) reported that the system is aimed at enabling the achievement of a certificate-less system in the Nigeria capital market.
E-allotment of shares as it is known is a process of direct credit of approved allotment on offers to the CSCS account of shareholders, as against the conventional issuance of share certificates. It is a process which will aid the achievement of certificateless transaction in the Nigerian capital market. (UBA Registrars, 2008)
The e-allotment is introduced as a result of postal services delays, and "the need to reduce costs in printing and dispatch of share certificates as well as to enable all investors in public offers speedily allotted shares."
Conclusions and Recommendations
It can be concluded that in Nigeria, the only obstacle to stock investment is the low level of investors' enlightenment on the benefits of the entire system, which has greatly affected the acceptance level negatively. Therefore, it is recommended that the regulatory agencies like the Nigerian Stock Exchange and Securities and Exchange Commission should continue to enlighten Nigerian especially, using major Nigerian languages on the gains of stock investment.
Body Contouring May Be Right For You
If you have fat built on different parts of your appearance that makes you uncomfortable and self-conscious, you may want to consider body contouring. It is a quick and easy procedure that can allow you to get the look you have always wanted, without having to spend hours on end in the gym. Over the years, many advancements have been made when it comes to body contouring. It is far less painful than it has ever been and the recovery time is shorter than ever.
If you are thinking about body contouring, it is important to meet with a plastic surgeon to discuss the options that are available to you. Many people are often surprised by how seamless the look is. You will not have to worry about massive scarring or it being noticeable where you had the procedure done. The only way that anyone will be able to tell that anything changed is that you will look smaller and more fit.
If you have recently lost a large amount of weight, body contouring may be right for you, as well. It will allow you to get the finished look you want quickly and easily. When you gain large amounts of weight, your skin stretches to accommodate the extra tissue. When you lose the weight, the skin often does not shrink back down to the size that it was. This can leave you with large amount of drooping skin that may make you feel uncomfortable and embarrassed. After you work so hard to lose the weight, you should be able to show off your new and improved appearance with confidence. This procedure may be just the thing you need to feel great about yourself again.
Most insurance companies will not pay to have the procedure done. However, there are now many different payment plans available to make the process far more affordable than ever before. You can get a loan from a bank to pay for the procedure or some plastic surgeons offer in-house financing to make it even easier for you to get the procedure, you want. If you choose to get in-house financing or a loan from your bank to pay for the procedure, it is important to realize that both may require you to put down a significant down payment on the loan.
After your body contouring surgery, your recovery time should be minimal. If you have any concerns about what you will and will not be able to do during recovery, it is important to voice those to your doctor before the procedure takes place. This will allow him or her to give you tips to help you feel more at ease with the situation and to allow your recovery to go as smoothly as possible.
If you are thinking about body contouring, it is important to meet with a plastic surgeon to discuss the options that are available to you. Many people are often surprised by how seamless the look is. You will not have to worry about massive scarring or it being noticeable where you had the procedure done. The only way that anyone will be able to tell that anything changed is that you will look smaller and more fit.
If you have recently lost a large amount of weight, body contouring may be right for you, as well. It will allow you to get the finished look you want quickly and easily. When you gain large amounts of weight, your skin stretches to accommodate the extra tissue. When you lose the weight, the skin often does not shrink back down to the size that it was. This can leave you with large amount of drooping skin that may make you feel uncomfortable and embarrassed. After you work so hard to lose the weight, you should be able to show off your new and improved appearance with confidence. This procedure may be just the thing you need to feel great about yourself again.
Most insurance companies will not pay to have the procedure done. However, there are now many different payment plans available to make the process far more affordable than ever before. You can get a loan from a bank to pay for the procedure or some plastic surgeons offer in-house financing to make it even easier for you to get the procedure, you want. If you choose to get in-house financing or a loan from your bank to pay for the procedure, it is important to realize that both may require you to put down a significant down payment on the loan.
After your body contouring surgery, your recovery time should be minimal. If you have any concerns about what you will and will not be able to do during recovery, it is important to voice those to your doctor before the procedure takes place. This will allow him or her to give you tips to help you feel more at ease with the situation and to allow your recovery to go as smoothly as possible.
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